Hims Hers Health Inc (HIMS)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 126,038 | 101,258 | 18,103 | -2,351 | -23,546 | -35,720 | -46,993 | -59,515 | -65,700 | -85,932 | -83,033 | -72,507 | -107,659 | -81,727 | -71,657 | -63,485 | -18,114 | -12,157 | -5,850 | -4,886 |
| Total stockholders’ equity | US$ in thousands | 476,716 | 440,051 | 361,966 | 344,482 | 344,029 | 328,562 | 320,071 | 312,745 | 311,741 | 310,946 | 319,059 | 327,715 | 334,619 | 355,153 | 293,054 | 292,466 | -146,874 | -143,341 | -138,949 | -139,953 |
| ROE | 26.44% | 23.01% | 5.00% | -0.68% | -6.84% | -10.87% | -14.68% | -19.03% | -21.08% | -27.64% | -26.02% | -22.13% | -32.17% | -23.01% | -24.45% | -21.71% | — | — | — | — |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $126,038K ÷ $476,716K
= 26.44%
The return on equity (ROE) for Hims Hers Health Inc has shown a gradual improvement over the past few quarters. The ROE was negative in the earlier quarters, indicating that the company's net income was insufficient to generate a positive return for shareholders' equity.
However, starting from the first quarter of 2024, the ROE turned positive at 5.00%, signaling that the company was able to generate a profit that exceeded the shareholders' equity. This positive trend continued to strengthen in the following quarters, reaching 26.44% by the end of December 31, 2024, demonstrating a significant improvement in the company's profitability and efficient utilization of shareholders' equity.
Overall, the increasing trend in ROE signifies that Hims Hers Health Inc has been more profitable and effective in generating returns for its shareholders over the analyzed period. Further monitoring of ROE would provide valuable insights into the company's financial performance and shareholder value creation.
Peer comparison
Dec 31, 2024